JERUSALEM Feb 5 Private equity deals in Israel
declined by 39 percent in 2013 to $2.2 billion, with the
industrial sector pulling in the most investments, but stronger
numbers are expected this year, the IVC Research Center said on
The $500 million buyout of Alliance Tire Group by KKR, a
foreign private equity fund, was the largest deal last year,
accounting for 23 percent of the total.
Israeli private equity fund investments accounted for $519
million, or 24 percent of total investments, down from $1.6
billion in 2012. It was the lowest share for Israeli funds in
the last three years, according to the survey compiled by IVC
and corporate law firm GKH.
Reasons for the decline include higher valuations offered by
strategic buyers, a greater focus by private equity firms
worldwide to realize profits on existing investments and a
general sense of caution in investing, said Rick Mann, a partner
and head of mergers and acquisitions at GKH.
The forecast for 2014 was positive, however, since Israel's
government passed a law to increase market competition.
"Because of the large number of companies that are expected
to be on the shelf as a result of Israel's recent legislation to
restrict economic concentration and holding company structures,
we believe that the coming year will offer significant
opportunities for PE investment," Mann said.
(Reporting by Ari Rabinovitch)